What is Anti-Money Laundering?

Money laundering is a process by which criminals disguise the true origins of money that they obtained through illegal activities, making it appear to have come from legitimate sources. Anti-money laundering laws are in place to prevent illegal activity and ensure the stability of our economy.The term “anti-money laundering” refers to both efforts to stop people who are trying to launder money, as well as the measures taken when someone has attempted or succeeded at laundering money.The objective in anti-money laundering is not just detection but deterrence too. It aims not only at blocking known forms of abuse but also at changing behavior so that potential abusers will choose other ways of achieving their goals.The following list is an example of the type of behavior that you should be aware of when anti-money laundering is concerned:Transferring money to a country with no anti-money laundering laws.Using illegal currency exchanges, usually found on street corners and in back alleys.Attempting to purchase large quantities of small denomination bills such as $20 or $50 notes instead of larger denominations like $100 bills because they are easier to smuggle across borders without having them detected by customs agents.Attempting to deposit large amounts of cash into a bank account without providing explanation or documentation.Using multiple accounts and identities for the same purpose.Engaging in wire transfers with banks that do not require identification such as offshore, private banking institutions (ex: Swiss Bank)Purchasing expensive items like cars, boats, and jewelry with no intention of paying back the loan associated with them once they are purchased.If suspicious activity is detected, it should be reported right away by calling the authorities.The Government and money launderingAnti-Money Laundering (AML) is a set of regulations and procedures that governments implement to prevent money laundering. The purpose of anti-money laundering laws is to stop…